Home batteries are the hot new accessory in the solar world.
More homeowners than ever before are pairing batteries with their solar panels. Installing a home battery can supply you with backup power during a blackout. But there’s another big benefit to home batteries beyond just keeping the lights on.
Using a home battery to take advantage of time-of-use rates, where electric utilities charge different prices for power at different times of day, can help lower your utility bills even more.
Here’s what you need to know about how time-of-use rates work, and how you can make the most of them.
What are time-of-use rates?
Time-of-use rates are when an electric utility charges you a different rate for electricity depending on the time of day you’re using it. This means higher rates during “peak” hours when demand for electricity is highest, usually in the afternoons and evenings. Electricity rates become lower during the off-peak hours (the rest of the day).
The idea behind time-of-use rates is twofold: They’re meant to accurately price electricity based on the cost of delivering it at any given time, and they’re signals sent to customers that nudge them into using less power during peak hours, according to Amy Heart, senior vice president of policy at solar installer Sunrun.
Not everyone can respond to those signals. Even if you want to reduce your power usage during peak hours, you might have no choice but to run your air conditioner or do laundry during those hours.
